CBRNE Defense Market Size, Share & COVID-19 Impact Analysis, By Purpose (Detection, Protection, Decontamination, and Simulation & Training), By Application (Military and Civil and Law Enforcement), and Regional Forecast, 2021-2028

The global Chemical, Biological, Radiological, Nuclear, and Explosives (CBRNE) defense market size was USD 15.18 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with supersonic jets witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 4.6% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 15.78 billion in 2021 to USD 24.25 billion in 2028 at a CAGR of 6.39% during the 2021-2028 period. The rise in CAGR is attributable to this market demand and growth, returning to pre-pandemic levels once the pandemic is over.

Chemical, biological, radiological, nuclear, and explosives (CBRNE) defense systems are generally used to create mass disruption to control and stabilize warfare situations. The government and companies are looking forward to integrating advanced technology in the CBRNE systems to optimize the overall process and overcome warfare situations.

The development of small unmanned aircraft systems has enabled the transformation of disaster response in the homeland. The advanced technology provides increased situational awareness for remote air monitoring and civil authorities that enables safer decisions. The U.S. Department of Defense (DOD) has equipped the National Guard’s weapons of mass destruction—civil support teams with UAVs that can detect and identify chemical, biological, radiological, nuclear (CBRN), and hazardous material (HAZMAT) materials.             

CBRNE Defense Domain Has Short Term Challenges Due to COVID-19 Pandemic

The impact of the COVID-19 pandemic on the defense industry has been minimal. Countries across the globe have not reduced defense expenditures due to the continuous rising border security and military modernization programs. It was expected that post-impact of the COVID-19 pandemic, there will be drastic defense budget cuts from developed nations such as the U.S., the U.K, Russia, China, and India. However, according to an analysis by the Stockholm International Peace Research Institute (SIPRI), governments around the world collectively spent more than USD 2 trillion in defense in 2021. This is the highest figure compared in the past three decades. The impact on the market has been short-term and will recover post-2022.

• It has been observed that the companies may divert the research and development spendings to strengthen their supply chains across the stakeholders. Thus, the new electronic warfare systems’ development and IT spending in the next few years would not be on priority. However, this market is anticipated to recover in 2021-22.


• Companies would have to design the safety norms considering COVID-19 spread. Companies should implement the Just-In-Time concept to procure and deliver the hardware systems and their sub-systems to the suppliers and end-users.


• The rising border security concerns in the Middle East and Asia Pacific may lead to new opportunities for this market during the forecast period. Companies will establish strong partnerships with the governments of countries such as the UAE, Saudi Arabia, India, Russia, China, and South Korea.

LATEST TRENDS

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Rising CBRNE Defense Technological Innovations by Key Market Players to Facilitate Novel Solutions to Boost the Market Growth

Rising geopolitical unrest and high demand for safety measures by various economies worldwide are driving the key market players to emphasize technological innovations against the CBRNE weapons utilized by terrorist groups, non-state actors, and certain international regimes. These factors are anticipated to influence the global CBRNE defense market growth.

According to our study, the rise in the CBRNE awareness, concerning the wartime response in mind, but since the diminishing threats of warfare, the manufacturers are emphasizing civilian, industrial, and commercial applications of the CBRNE systems and mechanisms. The high demand for these applications is driving the market growth.

In May 2021, Teledyne FLIR was awarded a contract worth USD 70 million for approximately 600 FLIR Centaur UGVs for the U.S. Armed Services, which has been capable in the detection of weapons and incidences by quickly attaching various detection sensors and payloads.

In March 2021, Teledyne FLIR systems Inc. was given an R&D contract worth USD 8 million for the development of the next-generation technology development from the Office of Joint Science and Technology of the United States Defense Threat Reduction Agency (DTRA JSTO).

DRIVING FACTORS

Dynamic Development in the Nature of Warfare, and Utility of CBRNE Threats by Terrorist Groups to Propel the Market Growth

According to the United Nations Office of Counter-Terrorism (UNOCT), international peace and security have been under serious threat owing to the prospect of CBRNE materials’ accessibility to the terrorists & their supporters and non-state actors.  This development has emphasized governments worldwide to invest and nurture R&D, and the manufacturing of systems for homeland security is anticipated to propel the market.

As per the UN Counter-Terrorism Centre (UNCCT), United Nations General Assembly has asked its member states in the UN Global Counter-Terrorism Strategy’s sixth review to restrict terrorists and non-state actors from accessing weapons and their delivery systems. It has also asked for cooperation within and between member states and regional and international organizations for capability enhancement of defense and restrictions on the proliferation of CBRNE weapons. These factors are anticipated to boost the market growth.

In November 2020, INTERPOL and UNCCT initiated a five-year joint initiative for the Global Threat Assessment Study on Non-State Actors & their materials. Such initiatives for measuring the threats and implementation of regulatory norms are expected to drive the market growth of the market.

 According to 2018 & 2019 Annual Threat Assessment of the U.S. Intelligence Community reports, the international regimes such as Russia, Syria, Iran, North Korea, Pakistan, China, and the terrorist group has increased the weapons threats through capability enhancement, production, proliferation, and utilization of weapons on the world populace. This factor is anticipated to influence market growth.

Favorable Regulations and International Agreements for the Development of CBRNE Solutions to Drive the Market Growth

According to the 2017 EU CBRN Action Plan, the European Union has adopted and focused on the accessibility reduction of materials, a robust preparedness against any internal and external links with regional and international partners. It has also been proposed that medical preparedness should be a priority of action plans. This regulatory adoption has further pushed the demand for defense specialist schools in the European market.  Further, this has resulted in emphasizing defense specialist courses attributed to the rise in the demand of a skilled workforce in this market by region.

The U.S. Department of Homeland Security’s National Strategy for CBRNE Standards, the strategy emphasizes interagency collaboration for better response and utilizes the research, development, test, and evaluation (RDT&E) of CBRNE infrastructure. It also emphasizes the establishment of the standards required for detection equipment, interoperability of various agencies, user training, and standard operating processes for the systems protection.

According to NATO’s Comprehensive and Strategic Level Policy for the proliferation of CBRNE defense, the 12th section emphasizes the reduction of the proliferation of weapons & their delivery systems and capability enhancements. Such a regulatory framework for the development of chemical biological radiological and nuclear defense marine solutions is anticipated to drive market growth.

RESTRAINING FACTORS

Lack of Investments in Research and Development to Hamper the Market Growth

CBRNE incidents and attacks on various countries worldwide have derived the conclusion that governments worldwide have been lacking in the CBRNE situational awareness, a robust SOP for first responders, the prevention strategy. These factors have been influencing the market growth owing to the limited investments in biological radiological and nuclear defense (CBRN) capabilities.

The lack of stringent equipment manufacturing standards and lack of investments in the research and development (R&D) of defense product portfolio and solutions by governments have long been derailing the capabilities of the manufacturer to produce state-of-the-art equipment and solutions. Such factors are restraining the growth of the market.

Governments are anticipated to learn from such fiascoes and invest in CBRNE equipment for future risks posed by terrorist and non-state actors owing to the easy accessibility of chemicals and materials required for weapon manufacturing.

The R&D in defense manufacturing and regulatory framework for non-proliferation has been widely limited to the developed and some of the developing economies. This has prevented the widespread capabilities’ enhancements of UN member states from the risks of proliferation into their states and defense capabilities against the CBRNE attacks.

SEGMENTATION

By Purpose Analysis

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Detection Domain from the Purpose Segment to Dominate the Market

Based on the purpose, the market is divided into detection, protection, decontamination, and simulation and training.

The detection segment held the largest market share in the year 2020 owing to the continuous increase in demand of a range of field-proven detection systems that are specially developed to provide military users with reliable tools that enable effective warning and response. For instance, Bruker Corporation’s RAPIDplus offers instantaneous stand-off chemical detection and identification at up to 5000 meters.

The protection segment is projected to be the fastest-growing segment with the highest CAGR of 6.87% in 2020. The rising need to improve the safety and security of military personnel and civilians by procuring and deploying defense solutions at public places such as airports, public transportations, country, and state borders is expected to boost the segment growth during the forecast period.

The decontamination segment contributed 23.98% of market shares, and is estimated to reach USD 5.42 billion by 2028. This share is accredited to the surge in the production of weapons across the globe. This factor increases concern regarding the safety and security of civilians and military personnel. Thus, to destroy, remove or neutralize the weapon impact, the need for a decontamination solution has increased significantly.

Simulation and training is a crucial aspect of defense. The demand for trained military personnel to carry out battlefield operations is rising over the last couple of years. Thus, it is estimated to have considerable growth during the forecast period owing to the rising simulation equipment procurement from Asian countries such as China, India, and Australia. This is expected to boost the growth of the market segment during the forecast period. 

By Application Analysis

Military Segment to Dominate Market Owing to Rising Procurement in Unmanned Aerial Vehicles with CBRNE Defense Capabilities.

Based on the application, the market is segmented into military and civil, and law enforcement.

The military segment registered the largest CBRNE defense market share of 78% in 2020 and is anticipated to remain dominant throughout the forecast period. The growing adoption of advanced defense solutions and military drones as well as increased defense budget worldwide are likely to boost the growth of the military segment. Moreover, the rising procurement of unmanned ground and unmanned aerial vehicles with CBRNE capabilities in homeland security is expected to boost the market’s growth.

According to the report of Stockholm International Peace Research Institute (SIPRI) 2021, the total global military expenditure rose to USD 1,981 billion last year, an increase of 2.6 percent in real terms from 2019.

The civil and law enforcement segment is projected to grow at a CAGR of 5.81% and is predicted to reach USD 5.11 billion in 2028. The rising terrorist threats, activities, and attacks using chemicals and biological weapons across the world, and increasing concerns related to the safety of civilians are expected to drive the segment growth during the forecast period. This factor also leads to the formulation of stringent laws by governments against terrorism leads to enhance the nation’s security. These are the primary factors that are anticipated to support the growth of the civil and law enforcement segment.

REGIONAL INSIGHTS

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The global CBRNE defense market is segmented into North America, Latin America, Asia Pacific, Europe, and the Middle East and Africa.

North America dominated the market in 2020. The market size stood at USD 5.90 billion in 2020. The adoption of safety measures to protect armed forces and high military budgets are the primary factors supporting the growth of the market in North America. According to the Stockholm International Peace Research Institute (SIPRI) report 2021, the U.S. accounted for 39% of total military expenditures in 2020; this will facilitate the growth of the market in the next few years.

The market in Latin America is expected to grow significantly during the forecast period. The growing focus on strengthening border security in Mexico is likely to fuel the market growth in Latin America. For instance, in 2019, the Mexican government had deployed 27,000 military and security forces to enforce migration laws.

Asia-Pacific market size is estimated to grow at the highest CAGR through the forecast period. The rising disputes among neighboring countries will increase the focus of governments, leading to the strengthening of the nation’s security in coming years. Moreover, the growing defense budgets of China and India to strengthen their border security are anticipated to fuel the market growth in Asia Pacific. For instance, in 2020, China and India invested USD 252 billion and 72.9 billion, respectively, on the development and modernization of the military and defense sectors.

The market in Europe is projected to grow significantly during the forecast period due to the presence of CBRNE solution manufacturers such as Argon Electronics, Avon Protection Plc, and Blucher Gmbh. The market in the Middle East and Africa is anticipated to grow at a moderate rate during 2021-2028. This growth is accredited to the increase in terrorist attacks and the focus of defense authorities on improving airport and border security.

KEY INDUSTRY PLAYERS

Diverse Portfolio and Core Focus on Defense of Teledyne FLIR Systems to Propel the Company to a Leading Position

Teledyne FLIR Systems is a global leader in advanced sensing technologies for defense and industrial applications. It provides solutions and products in various segments such as government & defense, industrial, public safety and transportation, security, marine, and research & development. The government & defense segment includes airborne systems, unmanned aerial systems, unmanned ground systems, land systems, CBRNE detectors, integrated solutions, command & control.

In March 2019, Teledyne FLIR Systems, Inc. completed the acquisition of Endeavor Robotic Holdings, Inc., a leading developer of battle-tested, tactical Unmanned Ground Vehicles (UGVs) for the global military and public safety, and critical infrastructure markets. The company is focusing on strengthening its CBRNE portfolio by implementing a mergers and acquisitions strategy in the upcoming years.

LIST OF KEY COMPANIES PROFILED:

• Argon Electronics (U.K.)


•  Avon protection Plc (U.K.)


•  Battelle (U.S.)


• Blucher Gmbh (U.S.)


• Teledyne FLIR Systems, Inc. (U.S.)     


• Nexter NBC sys (Germany)


• Karcher Futuretech Gmbh (Germany)


•  Murtech, Inc. (U.S.)


• HDT Global (U.S.)


• Saab Ab (Sweden)


• CQC (U.K.)


•  Leidos Holding Plc (U.S.)


• QinetiQ (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• June 2021– Teledyne FLIR Systems Inc. had a contract worth USD 19 million from the U.S. Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO CBRND) to modernize the military’s Dismounted Reconnaissance Sets, Kits and Outfits (DR SKO) Systems. The DR SKO system is a set of mission-specific kits that characterize and provide full-spectrum CBRN dismounted reconnaissance capability used by U.S. Joint Services, including units within the Army, Navy, Air Force, Marines, and National Guard Weapons of Mass Destruction-Civil Support Teams.


• May 2021– HDT Global was acquired by Nexus Capital Management. The company is primarily involved in the design and development of a range of products and solutions such as environmental control units, heaters and power generators, military vehicles, tactical shelters, chemical/biological/ radiological/nuclear (CBRN) filtration and protection systems. It mainly serves the U.S. military and its allies.


• November 2019–The Norwegian Defense Materiel Agency signed a contract to buy five cleaning/disinfection systems and four CBRN decontamination systems from Kärcher Futuretech GmbH. The contracts are worth around USD7.99 million in total, with deliveries scheduled for 2021/2022. A Contractor Logistic Support (CLS) contract has also been negotiated to ensure that the material is supported throughout its useful life.

REPORT COVERAGE

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The global CBRNE defense market research report provides a detailed analysis of the market and focuses on critical aspects, such as leading companies, applications, and purpose, and the leading platform of the defense systems. Besides this, offers insights into the market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market's growth over recent years.

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